The Future Analyst Role

AI is fundamentally changing what analysts can accomplish and creating demand for professionals who know how to wield these new capabilities.

The Productivity Paradox

McKinsey research suggests that generative AI can improve productivity in core investment banking activities by 30 percent to 90 percent, depending on the application. JPMorgan recently showcased its AI platform which created an investment banking deck in nearly 30 seconds, work that previously would have taken a team of junior bankers hours to complete.

What Changes, and What Doesn't

AI excels at tasks that have historically consumed massive amounts of time for analysts:

• Building initial model structures and formulas
• Populating and formatting presentations
• Finding comparable transactions and precedents
• Aggregating and standardizing data from multiple sources
• Checking calculations and identifying inconsistencies

But AI fundamentally cannot replace the skills that separate exceptional analysts from average ones:

Understanding context and nuance. Models don't exist in isolation. They support investment decisions shaped by management quality, competitive positioning, regulatory environments, and dozens of factors that require judgment to weight appropriately.

Navigating ambiguity. Deals in practice rarely fit the originally templated format. Capital structures get creative. Earn-outs have structured milestones. Working capital dynamics, minimum cash vary by industry and business model. Analysts who can pre-navigate for novel situations on questions that mid-level or senior finance professionals will ask remain invaluable.

Building relationships and trust. Getting numbers right is important, but finance is ultimately a relationship business. Clients and portfolio companies need trusted advisors who understand their situation deeply, communicate complex ideas thoughtfully and clearly, and provide strategic counsel for key decisions facing companies. Investors need to cultivate relationships over time with their LPs, founders and leaders, advisors, and bankers to enable themselves to identify, pursue, and execute on the best opportunities within their respective scopes.

The Emerging Analyst Role

Forward-thinking firms are already seeing how AI transforms the analyst experience:

From builder to architect. Instead of spending hours constructing models cell by cell, analysts increasingly focus on designing the right analytical approach, setting appropriate assumptions, and interpreting results. The mechanical work happens faster; the strategic thinking becomes more valuable.

From executor to advisor. As routine tasks get automated, analysts spend more time in meetings, contributing to strategic discussions, and interfacing with clients or portfolio companies. Junior professionals develop client-facing skills earlier in their careers.

What This Means for Your Career

If you're an analyst or associate, this shift has clear implications:

Technical skills remain essential. You need a strong command of financial modeling to effectively prompt AI tools, course-correct outputs, and catch errors before final delivery.

Judgment and strategic thinking become more valuable. As routine analyses become commoditized, the primary value shifts to critical thinking: identifying what matters and delivering sound recommendations.

Communication skills matter. You’ll spend less time in spreadsheets and more time explaining analyses, defending assumptions, and persuading others. The ability to translate complex financial work into clear, strategic recommendations becomes paramount.

AI fluency is non-negotiable. The analysts who thrive are those who embrace AI as a tool that amplifies their capabilities rather than viewing it as a threat. Learning to work effectively with AI agents is now table stakes for being an effective analyst.

The Real Opportunity

Research suggests generative AI could help global investment banks generate additional revenue of $3.5 million per front-office employee by 2026. As firms execute more deals and take on increasingly complex transactions, demand rises for professionals who pair technical excellence with strategic judgment. Analysts who master AI tools become exponentially more productive and valuable.